Lump sum

malcdj · Post by **malcdj** » 14 Jan 2018, 11:43

I left RM 2 years ago on IHR, I will be 60 later this year, how do I calculate how much my lump sum would be on my pension. I’ve got the monthly figures, but would be helpful to know the cash I can get for tax purposes.
Thanks in advance.

heapsy · Post by **heapsy** » 14 Jan 2018, 13:37

malcdj wrote:I left RM 2 years ago on IHR, I will be 60 later this year, how do I calculate how much my lump sum would be on my pension. I’ve got the monthly figures, but would be helpful to know the cash I can get for tax purposes.
Thanks in advance.

The lump sum would anything up to 25% of your entire pension pot, if you chose to take it. Remember that this would reduce your annual/monthly pension income. Without any figures I couldn't tell you any more.

Post by **RobertT** » 14 Jan 2018, 14:11

Without knowing the exact details it’s hard to say, like which section you’re in and if you’re taking both NRA60 & NRA65 or just one?

But you can find out the rough value of your entire pot by multiplying your yearly pension by 20, adding on any standard lump sum(section B) and any AVC’s. Then to find out the maximum lump sum possible just divide by 4.

The lump sum would be tax free.

*Please bear in mind the above calculation will give you a ballpark figure. You should be able to get a more accurate one from the pensions centre.

malcdj · Post by **malcdj** » 14 Jan 2018, 14:36

Thanks for your replies. That’s what I thought it would be, just wanted to check. Now I have to wait till September!